The annual Insurance Shopping Study conducted by JD Power found that drivers who switched car insurance companies saved an average of $388 on their annual premiums this year. Unfortunately, many people who could benefit from these savings are missing out.
A recent survey conducted for InsuranceQuotes.com found that the average U.S. driver has worked with the same car insurance company for roughly 12 years. InsuranceQuotes.com‘s senior analyst Laura Adams said in an interview with Forbes, “If you haven’t shopped for auto insurance since the ’90s, it’s probably safe to say that you’re not getting the best deal.”
Car insurance companies are spending record amounts of money on advertising to entice car owners to compare their car insurance rates against those of the competition. According to a study released by SNL Financial, Allstate spent $937.3 million and State Farm budgeted $843.9 million for advertising last year.
However, relatively few motorists actually bother to compare car insurance rates. Roughly 36 percent of those surveyed said they never compare quotes to look for the best rates. The survey found that millennials and senior citizens are the least likely among all demographic groups to shop around for car insurance.
Many people make the mistake of shopping for car insurance only when they move to a new area or buy a new car. This could be costing them a considerable amount of cash each month as they pay their premiums. The formulas that dictate car insurance rates are changed regularly to provide car insurance companies with the best risk assessments for their business.
Car insurance rates for a particular diver can vary greatly between car insurance companies because the going rates for car insurance are based on a wide range of personal circumstances. Some companies offer lower rates for single drivers in urban areas, while others give preference to suburban families with multiple cars and a house.
Your driving record will also affect the premium you are required to pay for car insurance. Some companies have no problem accepting drivers that have spotty driving records, while other companies choose to reject them outright or charge them ridiculously high premiums. Comparing quotes from different insurers will help you find the best coverage for the lowest rates.
Among car insurance companies rated for shopping experience, a JD Powers survey has found that Erie Insurance comes out on top. Ameriprise and The Hartford tie for second place, with CSAA Insurance Group coming in fourth and Amica Mutual in fifth place. When rated for claims satisfaction, Amica Mutual ranks highest, followed by Auto-Owners Insurance, State Farm, American Family, Auto Club of Southern California Insurance Group) and USAA, in that order.